If you want an exciting, dynamic bank, you don’t really look at U.S. Bancorp (USB),
but if you want a steady, high-margin performer, particularly during
tougher times in the banking cycle, this is a name you consider. To that
end, U.S. Bancorp’s third quarter results didn’t have a lot of
surprises, though the company’s decision to accelerate capital returns
to shareholders was a welcome update.
Management’s
recent investor day highlighted some meaningful growth opportunities for
U.S. Bancorp, including ongoing investment in payment technologies,
branch-lite digital-driven organic consumer banking growth, and maybe
even some M&A. Pre-provision growth will probably drop to the
low-single digits next year, and I’m only looking for around 3%
long-term core earnings growth, but this is a very profitable, well-run
bank that is trading at a reasonable valuation today.
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A No-Drama Quarter From U.S. Bancorp With Increased Capital Returns On The Horizon
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